Fitch Ratings Downgrades Alcoa’s Credit Grade to BB+

Bloomberg reported that Fitch Ratings has cut Alcoa Inc.’s (NYSE:AA) credit grade from BBB- to BB+, one level below investment grade. The firm “sees Alcoa’s total debt remaining more than 2.5 times its earnings before interest, taxes, depreciation and amortization.”

Other firms have treated Alcoa similarly:

The company was cut to junk by Moody’s Investors Service in May. Standard & Poor’s rates its debt BBB-, the lowest investment-grade level. New York-based Alcoa was removed from the Dow Jones Industrial Average on Sept. 10 after 44 years.

Alcoa told the news outlet in a statement:

Alcoa is aggressively transforming the company — building out our value-add businesses and improving our competitive position by lowering the cost base of our commodity business. Our debt is at the lowest level it’s been since 2007, and we have no significant maturities due before 2017.

Click here to read the full Bloomberg report.